Who is liable if found to be an employee?

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Art

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Looking at setting up a company on my own to provide consultancy services. The bulk of my work will initially come from one company, namely my current employer, and they are concerned that, if they are audited by Revenue, I may be deemed to be an employee and they will be found liable for all back taxes. Surely however if I set up as a company, my company will be liable? I will have at least one other employee from the outset.
 
Art said:
Looking at setting up a company on my own to provide consultancy services. The bulk of my work will initially come from one company, namely my current employer, and they are concerned that, if they are audited by Revenue, I may be deemed to be an employee and they will be found liable for all back taxes. Surely however if I set up as a company, my company will be liable? I will have at least one other employee from the outset.
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If you were found to be an employee of their company so it would be their liability not your company's hence their concern.

Whether you would be is down to loads of things and without lots of specific information nobody can accurately advise you.
 
I estimate that at least 60% of my income will be coming from my current employer in the first year. However the amounts of money paid and the hours involved will be irregular in that I will not receive the same payments every month. I will have one other employee and possibly two. I will provide my own mobile phone and will operate from my home. Is there any other specific information that would be required?
 
You'll need specific professional advice. There are general principles but without all the facts of the case it's difficult to be in any way definitive without going round in circles.
 
As T McG says you need the right specific professional advice.
Some ideas to consider:
One test is whether there is really no difference in the roles/locations/hrs worked/payment/tasks and duties etc and the only real change is from employee to consultant.
eg do u currently work irregular hours from home for them?
Are you going to be "fired" or retire or what?
Is the position going to subject to some tender process?
 
Art said:
I estimate that at least 60% of my income will be coming from my current employer in the first year. However the amounts of money paid and the hours involved will be irregular in that I will not receive the same payments every month. I will have one other employee and possibly two. I will provide my own mobile phone and will operate from my home. Is there any other specific information that would be required?
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Get decent advice. Based on the limited information provided, it should be possible to get the answer you want. The advice should provide a roadmap for what you need to do, as well as validation (or otherwise) of what you're planning to do.
 
In the eyes of the Revenue it will boil down to whethr they view it as a contract of service or a contract for service and certain conditions need to be meet for each. You can therefore protect yourself on this basis but it would be best to review this as these are the conditions they would access you on
 
Agree with the others, I understand that the "employer" is only engaging with "subcontractors" that are limited companies. So the contract is between the "employer" company and another company.

At the second level that company sends it's staff to fulfill the contract. The place of work appears to be where the "employer" company's office is!

Clear as mud.
 
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